If goods were characterized by increasing marginal utility, we would observe consumers spending all of their income on one good.

Name: If goods were characterized by increasing marginal utility, we would observe consumers spending all of their income on one good.
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Question

Quizplus · Accepted Answer

If goods had increasing marginal utility, consumers would gain more satisfaction from consuming additional units, leading them to allocate all their income to that good to maximize utility.

If Goods Were Characterized by Increasing Marginal Utility, We Would